Jerusalem Resident Charged in 9.3 Million Shekel National Insurance Fraud Scheme

A Jerusalem resident was charged with large-scale fraud involving dozens of false claims for disabled child allowances, unlawfully obtaining 9.3 million shekels.

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Jerusalem Resident Charged in 9.3 Million Shekel National Insurance Fraud Scheme
Photo: ICE / ביטוח לאומי (צילום shutterstock)

The State Attorney's Office filed an indictment on Wednesday at the Jerusalem Magistrate's Court against 48-year-old Jerusalem resident Bracha Rothman, charging her with large-scale fraud. According to the charges, Rothman orchestrated a scheme involving dozens of false claims submitted to the National Insurance Institute for disabled child allowances based on fictitious hearing impairments. Using forged medical documents and impersonating the children's parents, the accused managed to unlawfully obtain approximately 9.3 million shekels from the state.

The Fraudulent Mechanism

According to the indictment, filed by Attorney Ronit Shnetzer Yaakobi from the Jerusalem District Attorney's Office, Rothman collaborated with other individuals to systematically exploit families. Advertisements were posted across the country offering assistance in realizing rights from the National Insurance Institute. Parents who responded handed over personal details and medical documents concerning their children, believing they would receive legitimate aid for hearing impairments.

Rothman and her accomplices used the submitted documents to file fraudulent claims. They attached forged hearing tests based on Rothman's own children's medical files, altering personal details and hearing levels. In many instances, Rothman personally called the National Insurance Institute multiple times, impersonating the parents to track the status of the claims. The state subsequently approved the payouts, transferring funds retroactively over several years while charging the families substantial processing fees.

Widespread Scale and Charges

"The allowance system relies on trust to ensure that children with disabilities and their families receive the help they deserve. Exploiting this trust through forgery and impersonation harms the public coffers and burdens those who genuinely need the system," stated Attorney Ronit Shnetzer Yaakobi.

The indictment comprises 31 counts, including aggravated fraud, forgery of a document with intent to obtain under aggravating circumstances, and use of a forged document. The first three counts relate to fraudulent claims filed for Rothman's own children, totaling over 820,000 shekels. The remaining charges detail false claims submitted for families residing in Jerusalem, Beit Shemesh, Modi'in Illit, Beitar Illit, and Safed, with individual payouts ranging from tens of thousands to over 600,000 shekels.

The investigation was conducted by investigators from the Jerusalem branch of the National Insurance Institute, assisted by intelligence units and the Zion territorial crime unit of the Jerusalem Police District. Authorities emphasized that systemic benefit fraud severely damages public resources intended for vulnerable populations.

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